How to Use Apple Pay

Setting Up Apple Pay

You must set up Apple Pay for Apple Watch before you can use Apple Pay on the device. For this, use the Apple Watch app on iPhone. See Configure Passbook and Apple Pay for details.

Specifying Default Card

You can set up Apple Pay for Apple Watch with a single credit card or debit card. You can also use multiple cards. If you set up a single card, Apple Pay will use it as the payment source. However, if you use multiple cards, you can specify the default card by tapping Default Card on the Passbook & Apple Pay screen. Then tap the appopriate card on the Default Card screen.

Open the App on Apple Watch

Apple Watch provides a shortcut to opening Apple Pay quickly. To open Apple Pay, double-click the side button to go straight to the Pay screen. This shortcut works even if the Apple Watch screen is turned off.

It is possible to access Apple Pay via the Home screen.

To perform the action, click the Digital Crown from the watch face to display the Home screen.

Tap Passbook & Apple Pay.

On the Passbook screen, tap Pay.

Select the Payment Card

After you open Apple Pay on Apple Watch, select the payment card you’ll use to make the payment. If only one card has been set, the app will use that card automatically. In this case you do not need to select it. If multiple cards have been added, swipe left or right until the card you want to use appears on the screen.

Make the Payment

After you have chose the means of payment, you can pay by holding the face of Apple Watch to the contactless payment terminal.

Apple Watch will tap your wrist and beep to indicate that it has sent the payment information.

When the Done screen appears, tap the check mark.

A Few Words about Apple Pay

Apple Pay is a mobile payment and digital wallet service developed and marketed by Apple Inc. Apple pay lets users make payments using the iPhone 6 and later models, as well as Apple Watch-compatible devices (on iPhone 5 and later models), iPad Air 2, iPad Pro and iPad Mini 3 and later and Mac.

Apple Pay does not require Apple Pay-specific contactless payment terminals, as it works with existing contactless terminals.Apple Pay uses the EMV Payment Tokenisation Specification. The system lets mobile devices make payments at contactless points of sale and in iOS apps and On the Web. It digitizes and replaces the credit or debit card chip and PIN or magnetic stripe transaction. The system is similar to other contactless payments, with the addition of two-factor authentication.

Apple devices wirelessly communicate with point of sale systems using a NFC (short for Near Field Communication) antenna, the Secure element or “dedicated chip that stores encrypted payment information”, and Apple’s Touch ID and Wallet.

Apple Pay lacks Touch ID security. Instead, Apple Pay is activated with a passcode and will remain active for as long as the user wears the Apple Watch.

The service keeps customer payment information private from the retailer by replacing the customer’s credit or debit card Primary Account Number (PAN) with a tokenized Device Account Number (DAN), and creates a “dynamic security code generated for each transaction”.

Users can remotely halt the service on a lost phone via the Find My iPhone service.

To pay at points of sale, users hold their authenticated Apple device to the point of sale system. iPhone users authenticate by holding their fingerprint to the phone’s Touch ID sensor, whereas Apple Watch users authenticate by double clicking a button on the device. To pay in supported iOS apps, users choose Apple Pay as their payment method and authenticate with Touch ID. Users can add payment cards to the service in any of three ways: through their iTunes accounts, by taking a photo of the card, or by entering the card information manually.

Apple assumes some liability for fraudulent use of the service. Banks are expected to carry the burden of the service, and Apple is said to have negotiated smaller transaction fees. In turn, the banks hoped to capture purchases that were formerly handled without credit. According to Financial Times Apple receives 0.15% cut of US purchases made with the service.

In EMV-mode transactions, Apple Pay supports the use of the Consumer Device Cardholder Verification Method (CDCVM) using Touch ID, or the phone’s or watch’s passcode. The use of CDCVM allows for the device itself to provide verification for the transaction and may negate the requirement for the cardholder to sign a receipt or enter their PIN. Additionally, in certain markets which have a ‘no verification contactless limit’ using contactless cards, the use of CDCVM can enable merchants to accept transactions higher than these amounts using Apple Pay, providing their terminal software is updated to support the latest network contactless specifications.

Apple Pay implements the Contactless EMV standards from the major payment card networks and should work at any merchant that supports contactless payments worldwide, regardless if they specifically advertise Apple Pay acceptance or if the feature’s support is offered by card issuers in that country. However, due to provisioning differences between countries (and even between issuers), users may encounter acceptance issues when travelling to a different country. Some current known issues include:

US-issued VISA cards do not support Offline Data Authentication, which prevents them from being used on certain public transport services, most notably Transport for London.

Canada, UK, and possibly other non-US-issued VISA cards only support EMV-mode transactions and not legacy magnetic stripe data emulation transactions. Most contactless terminals in the US do not currently support EMV-mode contactless transactions (even if they support EMV contact transactions), and therefore these visitors to the US will receive a ‘Could Not Complete Payment’ error on the iPhone screen and an error on the terminal when attempting to use Apple Pay.

US-issued American Express cards do not support EMV-mode, which prevents them from being used on certain public transport services, and at terminals that do not support American Express magnetic stripe data emulation transactions.

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Using Apple Pay on Apple Watch. Video published by Terry White on April 26, 2015. Terry White shows using Apple Pay on Apple Watch at Walgreens. See it work.